Uganda: Staff Report for the 2024 Article IV Consultation—Informational Annex
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International Monetary Fund. African Dept.
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UGANDA

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UGANDA

STAFF REPORT FOR THE 2024 ARTICLE IV CONSULTATION—INFORMATIONAL ANNEX

August 16, 2024

Prepared By

The African Department

(in consultation with other departments)

Contents

  • RELATIONS WITH THE FUND

  • RELATIONS WITH OTHER INTERNATIONAL FINANCIAL INSTITUTIONS

Relations With the Fund

Uganda and the IMF: https://www.imf.org/en/Countries/UGA

Exchange Rate Arrangements:

Uganda’s de jure exchange rate arrangement is free floating. The authorities intervene in Uganda’s foreign exchange market when short-term fluctuations jeopardize its orderly operation. Therefore, the de facto exchange rate arrangement is classified as floating. As of end-June 2023, the official exchange rate was UGX 3,699.86 per U.S. dollar. Uganda has accepted the obligations under Article VIII, Sections 2(a), 3, and 4, of the IMF’s Articles of Agreement, and maintains an exchange system that is free of restrictions on the making of payments and transfers for current international transactions and multiple currency practices.

Last Article IV Consultation:

The last Article IV consultation was concluded by the Executive Board on March 9, 2022.

Safeguards Assessment:

An updated safeguards assessment of the Bank of Uganda was completed in March 2021 in connection with the financial assistance for Uganda under the RCF approved by the IMF Executive Board on May 6, 2020. The assessment found that the Bank of Uganda maintained transparent financial reporting practices and a sound external audit mechanism, as well as an independent internal audit function conforming to international standards. The report pointed to some risks related to the legal framework, internal controls in areas of credit to the government and currency operations, which the central bank is addressing.

Uganda’s Financial Position in the Fund:

https://www.imf.org/external/np/fin/tad/exfin2.aspx?memberKey1=990&date1key=2099-12-31

Membership Status: Joined: September 27, 1963; Article VIII

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Latest Financial Commitments

Arrangements:

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Outright Loans:

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Overdue Obligations and Projected Payments to Fund2

(SDR million; based on existing use of resources and present holdings of SDRs):

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Implementation of HIPC Initiative:

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Table 1.

Uganda: Fund Technical Assistance Received

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Relations With Other International Financial Institutions

Uganda and the World Bank:

http://www.worldbank.org/en/country/uganda

World Bank projects:

http://projects.worldbank.org/search?lang=en&searchTerm=&countrycode_exact=UG

Uganda and the African Development Bank:

https://www.afdb.org/en/countries/east-africa/uganda/

1

Formerly Poverty Reduction and Growth Facility (PRGF).

2

When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.

3

Assistance committed under the original framework is expressed in net present value (NPV) terms at the completion point, and assistance committed under the enhanced framework is expressed in NPV terms at the decision point. Hence these two numbers cannot be added.

4

Under the enhanced framework, an additional disbursement is made at the completion point corresponding to interest income earned on the amount committed at the decision point but not disbursed during the interim period.

5

The MDRI provides 100 percent debt relief to eligible countries that qualified for the assistance. Grant assistance from MDRI Trust and HIPC resources provide debt relief to cover the full stock of debt owed to the Fund as of end-2004 that remains outstanding at the time the member qualifies for such debt relief.

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